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However, Matt Wrack, general secretary of the Fire Brigades Union, said the review was "just a fig leaf for slashing our fire and rescue service to bits".

Further reductions to the service, which has faced its biggest cuts in history over the last three years, could put lives at risk, the union warns.

Call-outs have fallen due to fire safety campaigns, improvements in technology, increased smoke alarms ownership and government imposed safety regulations on buildings and furniture.

Yet the services spend to their budget rather than the risks, the report found.

In some areas the cost per head is almost double to that of others, and social and economic factors do not account for the discrepancies.

The report says that if those authorities spending above the average found ways to reduce their spending, then the money saved or reinvested could amount to nearly £200 million per year.

The need for saving is also highlighted by the fact that between 2008 and 2012 total reserves held by stand-alone fire and rescue authorities increased from just over £200 million to more than £400 million.

Sir Ken said: "As a firefighter for over 40 years I know the Fire and Rescue Service in and out. I know firefighters care deeply about public safety and do the best possible job.

"I've seen their capacity to adapt, even in the most trying of circumstances, but my report highlights that there is much more that can be done by the service leaders to make the service as effective and efficient as possible."

He suggested one option was “moving towards a more national model, through enforced mergers to reduce the number of fire and rescue authorities potentially a full merger in the style of Scotland;

Dave Green of the Fire Brigades Union warned that “the blunt fact is that lives could be lost”.

He said the reduction in callouts was due to the preventative work of the fire service, but any cuts could mean this work was diminished.